In a year with more people working from home than ever, many might be questioning if or how they can deduct home office expenses.
Yes, if you’ve been working predominantly from home, you can deduct some home office expenses against your income. However, there are some things to consider and some things you will need.
Employees need to have a form filled out by the employer stating that they were working from home. (The original form was the T2200, but 2 simplified forms have been released to make this process easier).
Make sure the claim you’re making is reasonable. Think about what a reasonable percentage of costs could be attributed to a home office. In other words, you can’t just write off everything because you’re working from home!
In this video, we go into a little more detail on how to write off home office expenses. We also give examples of things that count as an expense and things that do not. Give it a watch for some examples and to learn more about what you’ll need to do this tax season.
The Canadian government has also announces a simplified claim process for people working from home. Under this new deduction, employees can deduct $2 per day worked from home, up to a total of $400.
We will have a video out about this soon, but definitely keep it in mind!
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It is always a good idea to contact your advisor to discuss your personal or business finances. We stay up to date on the current government programs available for business owners and are always happy to help our clients with the application process. If you’re in need of an accountant, check out our services page or book a “Get to Know You” meeting with us by clicking here!